Welcome to Money for the rest of us. This is a personal finance show on money, how it works, how to invest it and how to live without worrying about it.

I'm your host David Stein today's episode 290. It's title, What Are Close End Funds

and How to Invest in The Stock Market has been very volatile of late.

Yesterday, global stocks fell over 7%

and today they're up close to 5%.

Volatility tends to clump together,

just like if you're on an airline flight,

you hit some turbulence,

it tends to be followed by more turbulence.

In fact, that J.P. Morgan Retirement Guide, the study

where they looked at the previous 20 years and showed the performance had you

missed out on the 10 best days in the stock market, they pointed out that six out of the 10 best days were within two weeks of the 10 worst days.

Volatility clumps.

When markets start selling off this severely, part of me gets kind of excited because I know that there will be

bargains and the place that I invest, the vehicle that I invest, where I know I am getting a bargain are closed-end funds.

Closed-end funds are commingled investment vehicle.

There is a fund sponsor.

Your assets are pooled with other assets

and that fund sponsor invest.

Now there are publicly traded closed-end funds and there are private closed-end funds.

We're focused on the publicly traded closed-end funds because the private closed-end funds

there isn't a secondary market.

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